Question 1

Discuss four factors that are changing the way we manufacture.

Accepted Answer

The answer of Discuss four factors that are changing the...

Question 2

Factors that have led to a global market for manufacturing and service firms are

Accepted Answer

A)  improved transportation and communications systems. 
B)  improved telemarketing and communications. 
C)  improved telemarketing and transportation systems. 
D)  None of these factors have contributed.

Question 3

Setting the company's profit targets for the upcoming year is an example of the management function of

Accepted Answer

A)  planning. 
B)  control. 
C)  variance analysis. 
D)  internal auditing.

Question 4

Companies with a strong can benefit from strong customer and employee loyalty.

Accepted Answer

The answer of Companies with a strong can benefit from...

Question 5

Disclosing company information (when not legally obligated to do so) would be a violation of which part of the IMA Code of Conduct?

Accepted Answer

A)  competence 
B)  confidentiality 
C)  independence 
D)  credibility

Question 6

The focus of Lean Manufacturing is to eliminate waste, which is anything that does not add value to the end user (customer).

Accepted Answer

A) True 
 B)False

Question 7

Which of the following costing activities is associated with the financial accounting system?

Accepted Answer

A)  determining the cost of a department 
B)  determining the cost of goods sold for financial statements 
C)  preparing budgets 
D)  determining the cost of a customer

Question 8

In a company, engineers have redesigned production processes lowering production costs, shortening production cycle time, reducing waste and improving quality. Which type of managerial activity applies to this situation?

Accepted Answer

A)  controlling 
B)  continuous improvement 
C)  planning 
D)  decision making

Question 9

Which of the following is NOT an advance in information technology that affects firms?

Accepted Answer

A)  computer integrated applications 
B)  GAAP reporting 
C)  emergence of electronic commerce 
D)  availability of tools such as OLAP and DSS

Question 10

The examination for obtaining the Certificate in Management Accounting consists of two parts: (1) Financial Planning, Performance and Control, and (2) Financial Decision Making.

Accepted Answer

A) True 
 B)False

Question 11

You are a management accountant for Savage Corporation. Gabe Hopen, the sales representative for one of Savage suppliers, invited you to attend a professional sporting event. Because you are an avid sports fan, you accepted Gabe's invitation.
At the sporting event, Gabe begins talking about Savage's upcoming contract renewals with suppliers. Because there is intense competition and because it is the first bid he will submit to Savage Corporation, he asks you to review his bid to make sure "it is good enough" before he submits it to the company. In addition, because you are knowledgeable about costs, especially regarding this contract, he asks you to tell him if his bid is "in the ballpark" or "needs improvement." he indicates that if he wins the contract, you will be provided with season tickets for the rest of the year.
Considering the Standards of Ethical Conduct for Management Accountants, how would you respond to Gabe's
request?

Accepted Answer

The answer of You are a management accountant for Savage...

Question 12

Which of the following positions would most likely be a staff manager?

Accepted Answer

A)  manager of a Sears store 
B)  president 
C)  manager of a clothing division 
D)  controller

Question 13

The planning process includes

Accepted Answer

A)  setting objectives. 
B)  identifying means of achieving the objectives. 
C)  making decisions. 
D)  all of these.

Question 14

Competitive advantage is established by providing

Accepted Answer

A)  more customer products than competitors. 
B)  better quality than competitors. 
C)  greater customer value for less cost than competitors. 
D)  greater efficiencies than competitors.

Question 15

Performance reports are accounting reports that compare

Accepted Answer

A)  planned data with actual data. 
B)  audited data with actual data. 
C)  managers' bonuses with performance ratings by supervisors. 
D)  planned data with industry standards.

Question 16

JIT is a critical part of a more comprehensive approach referred to as:

Accepted Answer

A)  supply chain management 
B)  lean manufacturing 
C)  just-in-time manufacturing 
D)  computer-integrated manufacturing

Question 17

Which of the following duties is usually assigned to the controller?

Accepted Answer

A)  receiving, maintaining custody of, and disbursing monies and securities 
B)  directing the granting of credit to clients 
C)  investing the organization's funds 
D)  tax planning

Question 18

Positions in a company that have direct responsibility for its basic objectives are called _______________positions, and the positions indirectly responsible for the company's objectives are called___________________________ positions.

Accepted Answer

The answer of Positions in a company that have direct...

Question 19

Cost management information systems further competitive advantage by supporting three fundamental organizational goals. Which of the following is NOT one of these fundamental organizational goals that further competitive advantage?

Accepted Answer

A)  improved time-based performance 
B)  improved quality of products and services 
C)  maximizing shareholder value 
D)  improved efficiency

Question 20

Principles of personal ethical behavior include

Accepted Answer

A)  integrity. 
B)  respect for others. 
C)  fairness. 
D)  all of these.

Exam 1: Introduction to Cost Management